The Central Board of Secondary Education (CBSE) conducted the Class 12th Economics paper on March 17. The exam lasted for three hours, commencing at 10:30 am and concluding at 1:30 pm.
The majority of students managed to complete the paper within the allotted time and even had some time left for revision. The multiple-choice questions (MCQs) posed a moderate level of difficulty, with some being tricky, and they focused on value-based concepts.
Economics (Class 12) Term 2 Question Paper 2024
SECTION – A
(Macro Economics)
1. The measurement of Balance of Payments deficit is based on ______ transactions.
(Fill up the blank with correct alternative.)
(A) Autonomous
(B) Accommodating
(C) Current account
(D) Capital account
2. Identify, what does the shaded area (AEFG), in the given figure indicate?
I. Consumption > Income
II. Saving = Zero (0)
III. Consumption < Income
IV. Saving < Zero (0)
Alternatives:
(A) I and Il
(B) II and III
(C) III and N
(D) I and IV
For Visually Impaired Candidates :
Marginal Propensity to Save (MPS) is the slope of ______ function.
(Choose the correct alternative.)
(A) Consumption
(B) Cost
(C) Saving
(D) Investment
3. From the following, identify the correct reasons that may affect the supply of foreign exchange in an economy :
I. Purchase of land in England by an Indian
II. Foreign tourists visiting Taj Mahal
III. Donation of $ 500 million from Microsoft
IV. Indian students going to Australia for studies
Alternatives:
(A) I and II
(B) Il and IV
(C) II and III
(D) I and IV
4. From the given table, identify that level of income, where Average Propensity to Save (APS) becomes zero:
(Choose the correct alternative.)
| Income (2 crore) | 0 | 50 | 100 | 200 | 300 | 400 |
| Consumption (& crore) | 50 | 75 | 100 | 150 | 200 | 250 |
Alternatives :
(A) 50
(B) 100
(C) 200
(D) 0
5. If in an economy the initial deposits are rs.4,000 crore and Reserve Ratio (RR) is 10%. The value of total deposit created would be rs _____ crore.
(Fill up the blank with correct alternative.)
(A) 4,000
(B) 40,000
(C) 2,000
(D) 20,000
6. “Mr. Sahotra borrowed funds from bank for purchasing a new house”.
From the above statement, identify the indicated function of money :
(A) Medium of exchange
(B) Store of value
(C) Unit of account
(D) Standard of deferred payments
7. If in an economy the Balance of Trade is showing a deficit of ? 200 crore and the value of import is ? 900 crore, then the value of exports would be ______ сrоrе.
(Fill up the blank with correct alternative.)
(A) 200
(B) 1100
(C) 700
(D) 900
8. In a hypothetical economy, if entire additional income is consumed, the value of investment multiplier would be ______
(Fill up the blank with correct alternative.)
(A) One (1)
(B) Zero (0)
(C) Between zero (0) and one (1)
(D) Infinity (∞)
9. Identify, which of the following is not considered as Normal Resident’ of India?
(A) An Indian citizen working in U.S.A. embassy located at New Delhi.
(B) An Indian officials working in Indian embassy in China.
(C) An Indian diplomats visiting Canada for a summit.
(D) An Indian working in an American Company located in New York for a period of more than 1 year.
10. Read the following statements carefully :
Statement 1: Ex-post savings and Ex-post investments are equal at all
levels of income.
Statement 2: Under the effective demand principle, the equilibrium output is equal to ex-ante Aggregate Demand (AD).
In the light of the given statements, choose the correct alternative from the following :
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statemente 1 and 2 are true.
(D) Both Statements 1 and 2 are false.
11. Trade Deficit must exist, if a country is facing situation of Current Account Deficit (CAD).”
Defend or refute the above mentioned statement with valid arguments.
12 (a) Calculate Net Value Added at Factor Cost (NVAp) from the following data :
| S. No. | Particulars | Amount (in 7 Lakh) |
| (i) | Fixed capital goods (expected life span – 5 years) |
15 |
| (ii) | Domestic Sales | 220 |
| (iii) | Change in stock | (-) 10 |
| (iv) | Exports | 10 |
| (v) | Single use producer goods | 100 |
| (vi) | Net indirect taxes | 20 |
OR
(b) From the following data, estimate the value of Net Indirect Taxes :
| S. No. | Particulars | Amount (7 in crore) |
| (i) | Net National Product at Market Price (NNP MP) |
1400 |
| (ii) | Net Factor Income from abroad | (-) 10 |
| (iii) | Gross National Product at Factor Cost (GNP PC) |
1300 |
| (iv) | Consumption of fixed capital | 80 |
13. From the following data calculate Investment Multiplier and Equilibrium level Income in the economy.
(i) Change in initial investment (Al) = rs. 1,000 crore
(ii) Marginal Propensity to Save (MPS) = 0.5
(iii) Autonomous consumption (*) = rs. 50 crore
(iv) Planned investment = rs. 100 crore
14. “Open Market Operation by the Reserve Bank of India (RBI) helps in regulating money supply in the economy.”
Justify the given statement.
15. “With an objective to reduce inflation, government may reduce public Expenditure.”
Discuss the rationale behind such a step which may be taken by the Government.
(ii) Define Effective Demand Principle.
OR
(b) (i) State the meaning of ‘unintended accumulation of inventories.
(ii) “In an economy, Aggregate Demand (AD) is more than Aggregate Supply (AS).
“Elaborate the possible impacts of the same, on the level of output, income and employment.
(16)(a) (i) With suitable examples Distinguish between Direct tax and
Indirect tax.
(ii) Responding to the Prime Minister’s ‘Give it up campaign’ a large number of Indian families have voluntarily surrendered their cooking gas subsidy.
Identify and explain the objective behind this action taken by the Government of India.
OR
(b) (i) Distinguish between Revenue Receipts and Capital Receipts of the government, with suitable example.
(ii) “Under ‘Zero Defect, Zero Effect’ (ZED) scheme, the Government of India provides up to 80% subsidy to Micro, Small and Medium Enterprises (MSMEs).”
Identify and explain the objective of government budget. highlighted in the above text.
17. (a) As per The Economic Times report, dated April 11, 2023
“Electrie Vehicle sales cross 10 Lakh mark in financial year 2022-23.”
Analyse the likely impacts of this news on Gross Domestic Product
(GDP) and Welfare.
(b) Discuss briefly, the circular flow of income in a two sector economy model.
SECTION – B
(Indian Economic Development)
18. Read the following statements carefully :
Statement 1: China has used Market system mechanism without loosing political commitment to create additional social and economic opportunities.
Statement 2 : India, Pakistan and China have similar physical endowments but totally different Political systems.
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statements 1 and 2 are true.
(D) Both Statements 1 and 2 are false.
19. Read the following statements carefully :
Statement 1 : Casual workers are hired on a permanent basis and also get social security benefits.
Statement 2: Workforce comprises, both employed and unemployed person.
In the light of the given statements, choose the correct alternative from the following :
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statements 1 and 2 are true.
(D) Both Statements 1 and 2 are false.
20. _____ indicator may be defined as the measure of the extent of demographic participation in Social and Political decision making in a Country.
(Fill up the blank with correct alternative.)
(A) Economic
(B) Health
(C) Demographic
(D) Liberty
21. The scheme of ‘Micro Finance’ is extended through ______ credit provision.
(Fill up the blank with correct alternative.)
(A) Self help groups
(B) Land Development Banks
(C) Regional Rural Banks
(D) Commercial Banks
22. Introduction of Economic Reforms in Pakistan took place in year ______
(Fill up the blank with correct alternative.)
(A) 1978
(B) 1980
(C) 1988
(D) 1991
23. Read the following statements carefully :
Statement 1: Outsourcing is one of the important outcome of globalization process.
Statement 2: Owing to globalization, many Indian companies have expanded their operation abroad.
In the light of the given statements, choose the correct alternative from the following :
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both statement 1 and 2 are true.
(D) Both statement 1 and 2 are false.
24. Study the following picture :
Identify the kind of activities, which may be envisaged under _____ as diversification activity.
(Fill up the blank with correct alternative.)
Alternatives :
(A) Animal Husbandry
(B) Fisheries
(C) Horticulture
(D) Organie farming
For Visually Impaired Candidates:
______ farming is a system that is helpful in restoring, maintaining and enhaneing the ecological balance.
(Choose the correct alternative to fill in the blank.)
(A) Multi layered
(C) Organic
(B) Chemical
(D) Conventional
25. After independence, the rationale behind choosing Modernization as a planning objectives for the Indian economy were ______
I. To bring positive changes in the social outlook
II. Equitable distribution of income
III. Technological Upgradation
IV. Increase in Economic Divide
Alternatives :
(A) I and II
(B) I and III
(C) I and III
(D) I and IV
26. From the events given in Column-I and facts given in Column-II about China, choose the correct pair :
| Column – I | Column – II |
| Structural transformation | Limited Urbanisation |
| Great leap forward campaign | Reduced global demand for Chinese products |
| Less stress of usage on natural resources | Low density of population |
| Slowdown in GDP, since 2014 | Aimed at massive industrialisation |
Alternatives :
(A) (a) – (i)
(B) (b) – (ii)
(C) (c) – (iii)
(D) (d) – (iv)
27. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below :
Assertion (A) : India could not develop a sound Industrial-base during the British rule.
Reason (R) : Britishers followed restrictive trade policies, which strengthened Indian handicraft industries.
Alternatives :
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
28. Explain the role of quality education in human capital formation in a country.
29. (a) “Opening up of Suez Canal helped in establishing the British monopoly control over India’s foreign trade”.
Justify the given statement with valid arguments.
OR
(b) “Development of Railways during British rule encouraged colonial exploitation of the Indian resources.”
Justify the given statement with valid arguments.
30. From the given data, Compare and analyse Annual growth of Population and Urbanisation of China and Pakistan, with valid reasons :
Demographic Indicators, 2017-18
| Country | Estimated Population (in million) | Annual Growth of Population |
Population Density (per sq. km) | Sex Ratio | Fertility Rate |
Urbanisation |
| India | 1352 | 1.03 | 455 | 924 | 2.2 | 34 |
| China | 1393 | 0.46 | 148 | 949 | 1.7 | 59 |
| Pakistan | 212 | 2.05 | 275 | 943 | 3.6 | 37 |
31. (a) Study the following chart of Employment and Gross Domestic Product. Analyse the trend of the two variables between 1990-2012.
For Visually Impaired Candidates :
Explain why are regular salaried employees more in urban areas than in rural areas.
(b) Define Worker – Population Ratio.
32. (a) (i) development is an essential element to obtain the full potential of the rural sector in India”.
Justify the given statement with valid arguments.
(ii) State the meaning of Human Development.
OR
(b) “In a nation like India, self employment provides an important avenue for employment generation.”
Defend or refute the given statement with valid arguments.
33. (a) (i) “Direct and active participation of state was considered essential in Industrial development process in period 1950-1990.”
Justify the given statement with valid explanation.
(ii) “New Economic Policy 1991 altered the role of Reserve Bank of India (RBI) in the economy.”
Justify the given statement with valid explanation.
OR
